Evinix Accessories to tap mkt with 35 lakh shares

Noida (Uttar Pradesh), Feb 2: Apparels and fashion items major Evinix Accessories Ltd (EAL) is entering the capital market with an IPO of 35,00,000 equity shares of Rs 10 each to aggregate Rs 35-42 crore for expansion of its manufacturing units, one in Noida SEZ and two in Faridabad.

The initial public offer (IPO) in a price band of Rs 100-120 will open on February 12 and close on February 15.

The issue is being made through a 100 per cent Book Building Process, where at least 50 per cent of the issue shall be allocated on proportionate basis to Qualified Institutional Buyers (QIBs) (5 per cent of the QIB portion shall be available for allocation on proportionate basis for Mutual Funds only), Mr Raujeev Taneja, MD, Evinix, told reporters during a plant visit in Noida today.

Further, not less than 15 per cent of the issue shall be available for allocation to Non-Institutional Bidders (NIBs) and not less than 35 per cent of the issue shall be available for the allocation to Retail Individual Investors on a proportionate basis, subject to the valid bid received at or above the issue price.

The issue would constitute 32.71 per cent of the fully diluted post issue paid up-equity capital of the company.

The shares will be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Evinix plans to extend its Noida unit subsequent to the acquisition of an additional floor atop its existing building that would be constructed at a cost of around Rs 2.14 crore.

The company had recently entered into an agreement to acquire a unit at Noida SEZ for Rs 4.50 crore which was manufacturing and exporting outer wear.

The company will spend Rs 16.62 crore on the expansion of its manufacturing facilities. The company is also planning to expand the existing capacity of its Faridabad unit at an estimated cost of Rs 3.38 crore.

Commercial production at the acquired unit in Noida SEZ has already started. The expansion is estimated to be completed by March 2008, he added.

Evinix is in the business of designing and manufacturing fashion accessories and garments for exports as well as domestic markets.

The company's range of products includes bags, caps, hats, belts, scarves, stoles, wallets, baby bibs, cribs, blanket, and apparels for kids and women. It is also engaged in the trading of fabrics.

Evinix also holds licenses from Disney and Gini&Jony for the domestic market. Its long standing customers include leading household names such as Adidas, Gap, Old Navy, Esprit and Lee.

UNI